Supplier Aptiv said third-quarter net income rose nearly 11 percent to $246 million, but the company cut its full-year outlook for revenue and adjusted operating income because of the UAW's strike against General Motors.
Third-quarter net sales rose 2 percent to $3.56 billion despite a $70 million impact from the 40-day work stoppage at GM. Aptiv, which has a major stake in autonomous vehicle r&d, said third-quarter sales were boosted by growth in Europe and China. Aptiv also said its joint venture with Hyundai and new launches and acquisitions buoyed results in the third quarter.
The company anticipates a hit of around $250 million to its 2019 net sales because of the strike. As a result, Aptiv lowered its 2019 sales outlook to $14.26 billion to $14.36 billion from a previous range of $14.53 billion and $14.73 billion. It also cut its full-year adjusted operating income outlook to $1.53 billion to $1.55 billion from a previous range of $1.65 billion to $1.69 billion.
"While our revised outlook for the year reflects the adverse impacts of the GM labor strike, we remain confident in our ability to deliver on our commitments and outperform in the more challenging macro environment," CEO Kevin Clark said in a statement.
Shares of Aptiv closed Wednesday's trading up 2.3 percent to $92.42.
Aptiv, which is based in Dublin, Ireland, ranks No. 20 on the Automotive News Europe list of the top 100 global suppliers, with worldwide part sales to automakers of $12.87 billion in 2018. Nearly one-third of that total, 31 percent, came from Europe.